FISCAL YEAR RECOMMENDED BUDGET STRATEGY FOR SUCCESS MECKLENBURG COUNTY, NORTH CAROLINA

Transcription

1 FISCAL YEAR 2017 RECOMMENDED BUDGET STRATEGY FOR SUCCESS MECKLENBURG COUNTY, NORTH CAROLINA 1

2 Purpose of Presentation Provide an overview of the FY2017 Recommended Budget Revenue Estimates Service Districts o Law Enforcement Service District o Fire Protection Service Districts Expenditures Community Service Grants Deferred Maintenance Plan Education funding Next Steps 2

3 Guiding Principles A sound Strategy For Success Build on the momentum from Fiscal Year 2016 Invest in year 1 of the department s 3 year strategic business plans Create a long term strategy for addressing deferred maintenance Maintain the fiscal discipline strategy that Mecklenburg County is now known for 3

4 Revenue

5 Assessed Valuation FY2016 Adopted FY2017 Recommended Dollar Change Percent Change Property Tax Base $ Billion $ Billion $2.577 Billion 2.16% Property Tax Rate Value of Penny $11,725,206 $12,057,375 $332, % 5

6 Revenue Source FY2016 Revenue FY2016 Adopted FY2017 Recommended Dollar Change Percent Change Property Tax - Current $722,346,198 $742,738,879 $20,392, % Property Tax - Prior Years 6,826,000 6,826, % Sales Tax County 162,413, ,800,000 9,386, % Other County Revenue 34,439,658 30,055,573-4,384, % Interest on Investments 3,360,000 4,200, , % General Fund County Sub-Total $929,385,642 $955,620,452 $26,234, % Debt Service Fund -20 Cent $234,958,880 $241,661,200 $6,702, % Federal Revenue 112,755, ,050,401 2,294, % Sales Tax Debt Service 47,028,000 50,282,879 3,254, % Sales Tax Transit 38,000,000 48,000,000 10,000, % Code Enforcement Fees 24,389,996 25,997,837 1,607, % One-Time Fund Balance 23,400,000 25,750,000 2,350, % Solid Waste Fees 17,781,526 19,282,175 1,500, % Enterprise Reserve Fund Balance 16,000,000 21,000,000 5,000, % Other Non-County Revenue 128,142, ,930,227 9,787, % Total Revenue $1,571,842,776 $1,640,575,171 $68,732, % 6

7 Sales Tax Comparison General Fund Only 200,000, ,000, ,000, ,000, ,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000,000 - FY12 FY13 FY14 FY15 FY16* FY17 Budget 119,000, ,958, ,450, ,900, ,413, ,800,000 Actual 131,167, ,087, ,967, ,105, ,900,000 *FY16 actuals represent estimates as of April 30,

8 Fund Balance Appropriation FY2016 Adopted FY2017 Recommended Dollar Change Percent Change Other Post Employment Benefit $8,000,000 $8,000, % Capital Maintenance & Repair 8,000,000 8,000, % Technology Reserve & Strategy 6,000,000 15,000,000 9,000, % Pay-As-You Go 5,851,000 6,000, , % CMS Maintenance 4,000, ,000, Fleet Reserve 2,000,000 1,000,000-1,000, % CPCC Technology & Maintenance 1,555, ,555, Park & Rec Maintenance & Equipment 1,301, ,301, Public Library 1,099,000 1,500, , % Elections Office 786, , , Read Charlotte 500, , Community Support Services 200, , Human Resources 107, , Deferred Maintenance Plan -- 6,000,000 6,000, Economic Development , , Tax Collector , , Total Fund Balance Expense $39,400,000 $46,750,000 $7,350, % 8

9 Debt Service Fund FY2016 Adopted FY2017 Recommended Dollar Change Percent Change County Revenue $234,958,880 $241,661,200 $6,702, % CMS Debt Service $111,915,413 $105,095,736 -$6,819, % CPCC Debt Service 10,364,944 8,901,176-1,463, % General Debt Service 59,344,629 50,645,320-8,699, % Budgeted Fund Balance 53,333,894 67,018,968 13,685, % Debt Service Fund Balance to Deferred Maintenance Plan 10,000,000 $10,000, Total County Expense $234,958,880 $241,661,200 $6,702, % 9

10 Service Districts

11 Law Enforcement Service District FY2016 Adopted FY2017 Recommended Dollar Change Percent Change Assessed Valuation $7,158,257,036 $7,413,329,069 $255,072, % Total Net Tax Levy 14,838,995 15,358, , % Fund Balance* 150, , , % General Fund 680, , % Total $15,668,995 $16,876,793 $1,207, % Tax Rate % *$1.3M fund balance projected for fiscal year ending

12 Fire Protection Service Districts Charlotte ETJ* Cornelius ETJ Davidson ETJ Huntersville ETJ Mint Hill ETJ Assessed Valuation $5,191,253,279 $92,854,548 $224,198,975 $1,461,756,771 $417,801,726 Value of 1 508,743 9,100 21, ,252 40,527 Tax Rate Collection Rate 98% 98% 98% 98% 97% Projected Revenue 3,569,446 51, , , ,214 Change in Tax Rate *$8,246 is allocated from the fire district fund balance 12

13 Combined Recommended Tax Rates Comparison Municipality Mecklenburg County Tax Rate Municipal Tax Rate Total Tax Rate Charlotte $1.30 Cornelius $1.08 Davidson $1.17 Huntersville $1.12 Matthews $1.16 Mint Hill $1.09 Pineville $1.17 Unincorporated Area $ Municipalities recommending a tax rate increase for FY Municipal rate includes Law Enforcement Service District tax rate (.2114) and an average Fire District tax rate of (.0624) cents. 13

14 Expenditures

15 15 Department Repurposed Funds Item Amount Description Park & Recreation $2,600,000 Limited part time & temporary salary adjustments based on actual spend pattern. EMS Capital Budget 2,161,070 Fund capital replacement cost with EMS unspent fund balance Sheriff s Office positions 1,554,893 Elimination of 43 vacant positions due to lower jail population Community Support Services 1,500,000 Adjustment to reflect the actual amount for housing contracts. County Assessors Office 750,000 Revaluation reserve is fully funded. Register of Deed (ROD) 518,457 Transfer software maintenance to ROD reserve fund Sheriff s Office 500,000 Savings in hospital services due to reduced inmate population Public Health 225,000 Reduction in temporary staff used in CHS transition CPCC 200,000 FY2016 is the final year for WTVI merger funding County Assessors Office 120,000 Transfer paperless document management initiative to technology reserve fund. Public Library 100,000 Reduction in the part-time budget due the to temporary closing of the Morrison branch for renovations. Department Repurposed Funds $10,229,420

16 Enterprise Repurposed Funds Item Amount Description Inter-local Agreement $1,065,947 Reduction based on FY2017 cost for service Enterprise Fuel Reduction 957,000 Adjustment based on spend pattern and projection Inter-local Agreement - Procurement 773,167 Eliminate funding for City procurement services Enterprise Telephone 437,000 Reduction as a result of new Voice Over IP Enterprise One Time Expenses 318,000 FY2016 one-time purchases Enterprise Repurposed Funds $3,551,114 Total of Major Department & Enterprise Repurposed Funds $13,780,534 16

17 Planned Investments & Sustaining Operations Item Amount Description Department Software $1,677,776 Contractual increases for cost such as the Microsoft enterprise agreement and disaster recovery software. Vehicle Tax Collection 1,440,000 State fee for the collection of vehicle taxes. Facility Maintenance 500,000 Contractual increase for facility maintenance Economic Development 400,000 Business investment grants increases Security 234,000 Security contractual increase and to enhance the service provided at County facilities Utility Increases Total $4,502, ,993 Funding to support increased hours at the public library and the opening of new park facilities and the new & LUESA location 17

18 Strategic Business Plan Investments Item Amount Description Park & Recreation $779,700 Equipment and 10 positions to support the maintenance plan Court Officials 568,183 Salary supplement for District Attorney & Public Defender s Office to bring them closer to market Technology 548,143 (3) positions to support the capability needs outlined in the department s strategic business plans (3) positions to support enterprise risk management & quality assurance Health Department 477,056 Funding to: expand village heartbeat program; expand family planning options; fund (1) environmental health specialist, (1) position to connect HIV positive individuals with proper care; and, to complete the expansion of the Child Development Community Policing program to all towns County Assessors Office 456,278 Funding to assist with preparation for the next revaluation Sheriff s Office 387,867 Crisis intervention training to reduce inmate behavior incidents and NC Gang School Certification to assist with gang identification and activity within the jail. Park & Recreation 372,089 Funding for new facilities coming online. 18

19 cont d Strategic Business Plan Investments Item Amount Description Human Resources $278,628 (3) Recruitment positions to assist with talent acquisition and funding for the Cigna Wellness platform focused on improving employee s physical and mental health. Community Support Services Criminal Justice Support 252, ,312 (2) positions that provide services to women in the Domestic Violence Adult Victim services program and (1) Bi-lingual Clinician to provide services to Spanish-speaking victims and child witnesses of domestic violence services. Additional staffing: (1) Domestic Violence District Attorney, (1) Clerk of Court position to assist with gun permitting, (1) Race Matters for juvenile justice and forensic services for psychological evaluations. Economic Development 200,000 Funding to support workforce development initiatives including job readiness and retention services. Tax Office 160,000 Funding for Attorney fees to expand services to support the new foreclosure strategy to increase tax collections. Social Services 134,000 Funding to expand the In-Home Aide services program for seniors to assist with daily living activities. Total Strategic Business Plan Investments $4,869,256 19

20 Investing in Employees Item Amount Medical & Dental Claims $8,400,000 Employee Merit Increase 6,357,223 Local Government Employee Retirement System LGERS 2,139,024 Annualized Merit Increases 1,971,224 Fair Labor Standard Act 1,000,000 Reclassifications, equity, and market Adjustments 1,037,094 Unemployment Insurance (100,000) Total $20,804,565 20

21 Recommended Positions 6,000 5,486 5,437 5,000 4,875 4,000 3,000 2,000 1,000 - FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY

22 Community Service Grants

23 Community Service Grants Target Area: Improve the High School Graduation Rate FY2016 Adopted FY2017 Recommended 100 Black Men of Greater Charlotte $20,000 $20,000 A Childs Place 50,000 50,000 Arts & Science Council Studio , ,000 Big Brothers Big Sisters Mentoring ,000 25,000 Big Brothers Big Sisters School-Based Mentoring 50,000 50,000 Citizen Schools 50,000 50,000 Communities in Schools 1,063,000 1,063,000 First Baptist Church West 75, Freedom School Partners* -- 50,000 International House 50,000 50,000 YMCA of Greater Charlotte 185, ,000 YWCA of the Central Carolinas 50,000 50,000 Total: Improve the High School Graduation Rate $1,968,000 $1,943,000 *First Time Funding 23

24 Community Service Grants Target Area: Prevent Health Risks and Diseases FY2016 Adopted FY2017 Recommended World Reach Bethesda Health Center $165,000 $165,000 Care Ring Nurse Family Partnership 125, ,750 Care Ring Physicians Reach Out 250, ,000 Charlotte Community Health Clinic Homeless 270, ,919 Charlotte Community Health Clinic Low Income 250, ,000 MedAssist of Mecklenburg 500, ,000 Shelter Health Services 69,000 69,000 Teen Health Connection 50,000 50,000 Levine Senior Center Senior Activities Services 70,000 70,000 Total: Prevent Health Risks and Diseases $1,750,419 $1,862,669 24

25 Community Service Grants Target Area: Promote Residents Financial Self-Sufficiency FY2016 Adopted FY2017 Recommended Ada Jenkins Center $25,000 $25,000 Center for Community Transition 50,000 50,000 Community Culinary School 60,000 80,000 Goodwill Industries* 50, Hope Haven 41,500 41,500 Latin American Coalition 50,000 50,000 Urban League of Central Carolinas 50,000 50,000 Junior Achievement 20,000 20,000 Total: Promote Residents Financial Self-Sufficiency $346,500 $316,500 *Did not apply for funding for FY

26 Community Service Grants Target Area FY2016 Adopted FY2017 Recommended Dollar Change Improve the High School Graduation Rate $1,968,000 $1,943,000 -$25,000 Prevent Health Risks & Diseases 1,750,419 1,862, ,250 Promote Residents Financial Self Sufficiency 346, ,500-30,000 Total $4,064,919 $4,122,169 $57,250 26

27 Deferred Maintenance Plan

28 Key Decision Point: Deferred Maintenance Plan The proposed deferred maintenance plan: 1. Will provide maintenance funds to support the County s five year Capital Plan (FY2014-FY2018) investment 2. Capital repairs and replacements will extend the useful life of assets 3. The plan will reduce overhead costs with efficient system replacements 4. A defined preservation plan for current & future capital investments 28

29 Examples of Deferred Maintenance Items Roofing Plumbing Equipment Electrical Systems HVAC Systems Paving and Site work Parks/Greenways Security Telecommunications 29

30 County Facilities Deferred Maintenance Plan: Current Funding Model o Capital reserve funding in place (County, Library, CPCC and Parks) o Funded up to 1.75 cents of property tax rate annually for all reserves Charlotte-Mecklenburg Schools o Capital Replacement budget $4,960,000 30

31 Deferred Maintenance Plan: Five Year Funding Request Total Five Year Request: $228,000,000 $30,000,000 13% $21,000,000 9% $26,000,000 12% County CMS CPCC Parks $151,000,000 66% 31

32 Deferred Maintenance Plan: Funding Source FY2017-FY2021 Total Funding: $150,000,000 $10,000,000 7% $30,000,000 20% Capital Reserve Fund Balance $10,000,000 7% $50,000,000 33% Pay As You Go Debt Service Capital Reserve Revenue General Fund Fund Balance $50,000,000 33% 32

33 Deferred Maintenance Plan: Proposed Annual Funding by Categories Total Annual Funding : $30,000,000 $3,500,000 12% $4,000,000 13% $4,500,000 15% Parks County Facilities CPCC CMS $18,000,000 60% 33

34 Summary of Deferred Maintenance Plan Provides for additional planned maintenance and replacement Provides stable annual funding Eliminates most one-time funding It is a ½ cent increase in the fund balance allocation for reserves Minimal effect on debt capacity Board approval will be requested, as part of the Budget Ordinance, at the June 21 regular meeting 34

35 Deferred Maintenance Plan

36 Education Funding

37 Charlotte-Mecklenburg Schools Funding Categories Recommendation FY2016 Adopted FY2017 Recommended Dollar Change Percent Change CMS Operating $399,902,352 $411,193,792 $11,291, % Deferred Maintenance Plan -- 18,000,000 18,000, CMS Capital Replacement 4,960,000 4,960, CMS One-Time Funding (Deferred Maintenance) 4,000, (4,000,000) % Operating & Maintenance Total $408,862,352 $434,153,792 $25,291, % General Fund County Revenue $929,385,642 $955,620,452 $26,234, % CMS Operating 399,902, ,193,972 11,291, % 37

38 Change in Revenue has had a Stronger Correlation than Change in Enrollment Tax Rate Change Percent Change in CMS Operating and Percent Change in General Fund County Dollars Percent Change in CMS Operating and Percent Change in Enrollment Percent Change in CMS Operating and Percent Change in Combined Enrollment Percent Change Correlation

39 Central Piedmont Community College Recommendation Funding Categories FY2016 Adopted FY2017 Recommended Dollar Change Percent Change CPCC Operating $33,673,949 $34,529,949 $856, % Deferred Maintenance Plan -- 4,000,000 4,000, Capital Reserve Funding 1,800, (1,800,000) % CPCC One Time Funding (Deferred Maintenance) 1,555, (1,555,134) % CPCC Operating Total $37,029,083 $38,529,949 $1,500, % 39

40 Funding Categories Education & Literacy Investment County Funds - Fund Balance Deferred Maintenance Plan FY2016 FY2017 Adopted Recommended Dollar Change Percent Change CMS County Funding Operating & Maint. $404,862,352 $416,153,792 $11,291, % CMS County Funding Debt Service 111,915, ,095,736-6,819, % CMS One-Time Funding Maintenance 4,000, ,000, CMS Deferred Maintenance - 18,000,000 18,000, CMS Total $520,777,765 $539,249,528 $18,471, % CPCC County Funding - Operating $33,673,949 $34,529,949 $856, % CPCC County Funding Debt Service 10,364,944 8,901,176-1,463, % CPCC Capital Reserve Funding 1,800, ,800, % CPCC One-Time Funding 1,555, ,555, % CPCC Deferred Maintenance - 4,000,000 4,000,000 - CPCC Total $47,394,027 $47,431,125 $37, % Public Library County Funding $30,320,942 $31,520,076 $1,199, % Public Library One-Time Funding 1,099,000 1,500, , % Public Library Enterprise Reserve Funding 2,485,567 2,375, , % Public Library Total $33,905,509 $35,395,076 $1,489, % Education Support Services Nonprofits $1,968,000 $1,943,000 -$25, % ASC Library & Parks Orchestra Programs 300, , , % Read Charlotte 100, , % Education, Literacy, & Deferred Maintenance $604,445,301 $624,618,729 $20,173, % 40

41 Funding Categories Expenditure Changes County Funds Only FY2016 Adopted FY2017 Recommended Dollar Change Percent Change County Operating $461,389,481 $474,819,531 13,430, % CMS Operating 399,902, ,193,792 11,291, % CMS Capital Replacement 4,960,000 4,960, CPCC Operating 33,673,949 34,529, , % CPCC-WTVI Merger 200, , % Capital Pay-As-You Go * 29,259,860 30,117, , % Total Operating $929,385,642 $955,620,452 $26,234, % Total Debt Service $234,958,880 $241,661,200 $6,702, % Total General Fund & Debt Service Fund County Dollars $1,164,344,522 $1,197,281,652 $32,937, % Funding excludes fund balance appropriation * The equivalent of 3 cents of the tax rate is budgeted in FY2017. Of the 3 cents, half a cent is funded from fund balance and funds capital expenses for CMS, CPCC, and the County. 41

42 Recap: FY2017 Recommended Budget Major Funding Adjustments Maintains the current general property tax rate = No tax rate increase in the Law Enforcement Service District = Adjust fire protection district tax rates to account for the decrease in assessed valuation A One-time fund balance appropriation = $25.8 million $14 million in repurposed funds to redirect to the strategic business plans Proposal of a new deferred maintenance plan Funding for a new foreclosure strategy that will increase tax collections 52% of the County budget funds education and literacy CMS operating budget receives the same percent growth as the County general fund Funding for year 1 of 3 year department strategic business plans Funding investment in the courts Funding for employee merit increases 42

43 Next Steps Date Time Activity June 2 June 6 June 9 June June 21 6:00 PM Budget Public Hearing 4:00-6:00 PM Joint Board of County Commissioners and Board of Education Meeting 3:00-5:00 PM Budget Workshop Detailed Overview of Manager s Recommended Budget 3:00 PM Budget Straw Vote Workshop 6:00 PM FY2017 Budget Adoption 43

44 Informal Meetings Board staff support will contact each commissioner to see if you want to meet to discuss the recommended budget Topics Discussed o Preparation for June 9 budget workshop o Details of Manager s Recommended Budget o Overview of the straw-vote spreadsheet and process 44

45 For Additional Information On County Website: Follow on Facebook and Twitter Register to speak at budget public hearing: o or o Dial:

46 Thank You Agency s Finance & Budget Staff Board Staff Support Clerks Office Financial Services Department Manager s Cabinet Public Information Department County Manager and the Budget Executive Team Office of Management & Budget 46

47 FISCAL YEAR 2017 RECOMMENDED BUDGET STRATEGY FOR SUCCESS MECKLENBURG COUNTY, NORTH CAROLINA 47